Visteon to Offer Salaried Staff Up to a Year's Pay

Visteon to Offer Salaried Staff Up to a Year’s Pay

Visteon Corp. offered white-collar employees up to a year's salary if they accepted a voluntary buyout and left the financially struggling auto supplier. In an e-mail to 8,300 salaried employees Monday, the Van Buren Township, Mich., company explained its latest effort to cut costs by eliminating an unspecified number of jobs. Workers who quit will receive 1 1/2 weeks of their base salary for each year of service. The minimum payment would be 12 weeks and the maximum payment 52 weeks.

by Alejandro Bodipo-Memba
Detroit Free Press Business Writer

VAN BUREN TWP, MI — Visteon Corp. offered white-collar employees up to a year’s salary if they accepted a voluntary buyout and left the financially struggling auto supplier.

In an e-mail to 8,300 salaried employees Monday, the Van Buren Township, Mich., company explained its latest effort to cut costs by eliminating an unspecified number of jobs. Workers who quit will receive 1 1/2 weeks of their base salary for each year of service. The minimum payment would be 12 weeks and the maximum payment 52 weeks.

Employees have until Dec. 13 to accept or reject the offer.

Visteon, a former unit of Ford Motor Co., said the buyout would be implemented beginning in 2005.

Employees who joined Visteon on or before Dec. 31, 2003, are eligible for the program. The program does not affect the more than 18,000 United Auto Workers members at Visteon.

Automotive News reported Monday that Visteon hopes to cut as much as 5 percent of its salaried U.S. workforce, or about 400 employees. Officials at Visteon deny setting targets for the plan.

“We’ve not talked about any specific goal or target for this voluntary separation program,” said Visteon spokesman Jim Fisher. “We will determine the number of reductions based on the needs of the business. If not enough volunteers are generated, the company will assess other options.”

Financially strapped Visteon has been under pressure to cut costs as vehicle sales have waned over the last year.

The sharp decline resulted from Ford, its largest customer, announcing its plan to cut vehicle production because of sluggish sales.

For the third quarter that ended Sept. 30, Visteon posted a net loss of $1.36 billion, or $10.86 a share, on revenue of $4.15 billion.

The plan encourages eligible employees to consult with their financial advisers before they make a decision.

“Until we know how many employees are interested we won’t know where things stand in that regard,” Fisher said.

Shares of Visteon rose 20 cents to close at $8.48 on the New York Stock Exchange.

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